Sal, I never knew how much I'd appreciate the news I get from your subject matter. You've increased my knowledge base. That's wealth no one can dismiss. Thank you.
@@wgowshipping I second op’s comments. I work in healthcare and your news commentary puts supply chains in perspective. Your channel should pop up on everyone’s news feeds! It beats mainstream media.
I was a land-loving Naval reservist on a Naval Air Station in the past. Never set foot on a ship. I have listened to Sal since the inception of this channel and it has opened my eyes to the generally ignored world view of ocean commerce and the power struggle of legit and nefarious players on that world stage. Thank you, Sal.
We all are. And when the costs of shipping goes up, it increases inflation throughout the country. Shipping rates skyrocketed earlier this year. The decrease in shipping rates is nowhere near the increase we dealt with earlier this year. I think Sal might have a hard in the till, because I can’t imagine anyone wanting to see the rates increase, especially knowing that it increases the rate of inflation as well. For all the whining we’ve heard about inflation and how the Democrats have been doing a lousy job, the notion that an increase in shipping rates , especially after they’ve already skyrocketed, is preposterous.
@@mudman6156 "For all the whining we’ve heard about inflation and how the Democrats have been doing a lousy job, the notion that an increase in shipping rates , especially after they’ve already skyrocketed, is preposterous." Learn to proofread. This sentence makes no sense. And, yes, the Democrats have been doing a lousy job. Too.
I stumbled across this channel a few months back think as a former sailor it might be interesting. I can honestly say it has turned into a wealth of information and education I never expected. Sal, today, I place you right up there with Robert Reich as my trusted sources for better understanding of geopolitics and global economics. I truly believe a structured compilation of your video material should be offered as a credited course for any good college economics program. At 65, I find it amazing how mch we can still learn when the material is presented in a Realtime assimilation manner. Thank You!
Sal, you are making an impact throughout the news. Today I heard Victor Davis Hanson talking about freedom of the seas and shipping. These guys are listening to you!
It seems that many “viewers” are paying attention… including those up the chain of command. In some ways, the truth being more widely available and having a high quality consumable summary… improves consistent shared objectives and to some degree, accountability and responsible action. KEEP UP THE GREAT WORK SAL!
freedom of the seas or artic/ice-cap's or space ( like the moon/mars ect ) is a practical matter as there's no good way of defending/daily-policing/politics-ect something like a flooded-fort/under water base or collecting taxes-ect USA has Monroe doctrine and salle/video/MAGA/founders is right if a ship wants help with pirate's-ect in the northern western hemisphere ( middle of atlantic and or pacific ocean's, AK/hi/other-dissonant holding's are a mistake as is over extended-politically and military wise, Mexican's was also a mistake on passing-on fully statehood option ) it needs to have USA sailor's/man'd ( passengers also need to be mostly USA passport holders and or -treaty'd-neighbours ie Canada/Mexican-to-panama_canal-zone or gulf's-island's like Florida keys's or cuba-ect ) and owners-ect and not Egypt...
For all things maritime, nobody brings us the news and analysis like Sal. Thank you, for taking the time to bring us the very latest news and analysis. Watching from North Carolina, USA. ❤❤
Godsend? Praying hands? Really? There are no ghosts, fairies, elves, demons, or gods. Grow up would you please, join the mature world of adults who don't spread fantasy tales.
Hey Sal, did you see the news about a USN senior petty officer who was courtmartialed for setting up a Starlink connection and wifi network aboard a warship that was underway? Navy Times had a report about it on 3 Sep.
LOVE the longer videos Sal great job😎.. I know it's tough for you to do those from what you've said about free time , I appreciate ALL the news on shipping you give us btw, I would love if you could do some more videos on US Naval ship building and the MASSIVE ISSUE it is for us and our National Security due to our "severe lack of ability" to build pretty much ANY Warship, Commercial ship and even Submarine in any normal amount of time and on or under budget..😟. It's so sad at our day and age what America has come to. We USED TO be the country most others wanted to be like, our factories and ship building industry was top of the line where we could pump out defense products & weapons, naval and commercial ships/subs in months and even weeks granted a lot of this was during war time but even before and a bit after we did it and then our idiot Presidents over the decades have forced ship building firms to close or be absorbed into just a few big ones and shrunk our Navy down to numbers that are laughable smh. I know I saw a video of yours that quickly mentioned a few changes we could make but if you could do some "in depth" videos on this and what/how to fix it would be awesome!(when you get a chance). Thank you for everything you do on your channel Sal, keep up the good work!!👍👏⚓🚢
Tariffs like Corporate Taxation ends up being paid by the end users. This is why I am a firm believer in buying USA/local supplier. I try to buy American so that will see the citizens get the jobs.
_'Tariffs like Corporate Taxation ends up being paid by the end users.'_ This is true. But, it only captures part of the picture. De-industrialisation has a cost that's picked up by the taxpayer as well. Higher unemployment has knock-effects such as crime, substance abuse, loss of wealth such as house value when a one-company town collapses, etc. Our price tags don't capture these costs. For much of US history it imposed tariffs on imports because the economy did not rely on exports unlike many other industrial countries like UK, Germany, France, and Japan. In the late 1800s exports by value no more than 10% of US GDP and decreasing as domestic consumption grew greatly and industrialisation expanded. Prior to the Great Depression exports were about 5% of US GDP in 1928. From 1970 to 2000 it ranged from 5.5 to 11.1%. Today it's about 11 per cent, in large part due to renewed energy exports.that make up about 11% of exports by value. Presently, exports are about 48% of Germany's GDP, 21.5% of Japan's, 32% of UK's, and 35% of France's. Of the people who benefit most from free trade, it's the managerial and credentialed class, lawyers, government employees, and academics who face little to no foreign competition yet gain much from low prices and greater variety of goods and services. This is not to say working class people also see some benefits as lower prices improve quality of life, but they are the ones who face the highest risk of job loss and the cascading effects from that due to foreign competition.
Tariffs and income taxes are two very different things. a 30% tariff on a $100 wholesale item adds $30 and is likely to be passed on. That same $100 item under a 30% corporate rate is taxed completely differently, and might not be taxed AT ALL. It depends on the business expenses, and if a company barely breaks even one year, it pays little to no taxes no matter how many $100 items they buy from a supplier/importer. If a company (like an auto manufacturer) imports $3,000 of parts/components on a BoM $15,000 cost car and I raise income taxes from 20% to 30%, each carmaker doesn't know what additional amount their competitors will pay because their costs/efficiencies/production will be different, and income taxes don't "force" you to make up any shortfalls: if GM happens to have too high costs in 2026, then they pay the IRS nothing because they break even... no income = no income tax. If that same company experiences a tariff increase by 10%, then they MUST pay it and they know everyone else in the industry is also paying it too. GM, barely breaking even, must pass it on because it's baked into the cost of goods and unlike income tax there's no "deductions" for tariffs, and Ford increases their prices when they see GM do so too. In most cases income taxes get mostly absorbed by shareholders, and tariffs get mostly passed onto consumers.
It’s not gonna make a difference, because when you buy American you’re still paying for the parts to build American supplies from another country! US inflation is so out of control this past century that it is not sustainable for American manufacturers to solely buy American.
@@stevie586 Witch is why taxing the income of overseas companies (which have profits or they wouldn't still be in business!) is better than tariffs hitting the American consumer. Simply require any foreign company which wants to sell it's goods in the US to pay X% of their gross revenue to the US government. IF they refuse they can't do business in the US. China needs US consumers more than US consumers need Chinese goods.
Sal, you are amazing. Most folks in the US are blind to what's going on. Thank you for your experience and vigilantes. We all are better for your support! Thank you!
Shareholders & top management should accept the new reality that workers want a bigger share in profits. The strike at Boeing should serve as an example. But changing attitudes after 40 years of shareholders & CEOs taking 95% of profit growth will not be easy.
Thank you, Sir. You do a great service to us by educating us about the very complex issues we all face as Americans! The increase in anxiety, not so much😂
If I recall correctly, the East Indian Company had its own navy to protect their shipping! Maybe the shipping industry should look into it! Rambling thoughts of an old hermit. (North Korea captured the USS Pueblo and shot down a Navy EC-121, killing the entire crew. We forget our history. We only have a total of 11 aircraft carriers!)
@@randomnickify That's by law. Man may change law. Don't forget, at times in history, for example during WWII, merchant ships were armed, making them warships. Convention (VII) relating to the Conversion of Merchant Ships into War-Ships in 1907 established the rules for this. That said, these may be amended or a signatory to a convention may denounce it, exit, and allow its merchant ships to operate as its new laws establish.
The "only" in that last sentence is doing some heavy lifting, given that _the entire rest of the world_ has a total of _eight_ aircraft carriers, all of them significantly smaller than any given one of ours.
@@user-bt8vn3dj6o You are not going to have armed ships going into foreign countries. No more than you're going to have airliners packing sidewinders. Do you really expect to sail into Tokyo or New York with a bunch of weaponry?
Paperwork and procedures ( at either loading or unloading) showing tariffs have been properly paid by all shippers and the apparatus to actually render those payments over to the government (and to handle disputes as to what is or isn't owing and/or due under those tariffs either from the shippers of the goods themselves or the shipping company handling the shipping) must be attended to continuously as new goods are shipped in from overseas; that paperwork and those procedures are all more work that the shipping company must attend to while moving the same volume of goods as before those tariffs were introduced - so therefore shipping costs rise. The analysis differs - there's less fresh expense - if they are simply tweaking an already well-established system of tariffs though, like simply varying the percentage size of the tariff.
They affect the rates paid to shipping professionals because the importers are so strapped for cash that they just cuts costs everywhere, and they have been absolutely robbing folks in the shipping industry to afford those costs. In top of that, these Tarrifs Trump imposed are the reason prices are so high at the point of sale. Uninformed Americans think it’s Biden, and I’m so happy Kamala Harris finally stated publicly the mess Trump handed them, because I’ve been trying to explain this to people for years. When these tariffs are increased, the consumer always eats the cost; the folks who sell you products are not gonna pay you to buy them; they’re gonna charge you!
@@filmbuffo5616 That's Ignoramus Economics. Shipping rates are a results of supply and demand and tariffs can lower demand, thus lowering rates. But lowering demand can also lower supply, over time. So tariffs can both increase AND decrease shipping rates. It's not monotonic.
What the ..... Ship!!!?? Wow! What an episode #109! You are the lone voice in the wilderness. The mood of too many people now is "nations are a thing of the past" 'cause we can all be friends. ... "Can't we all just get along?" Thank you for your diligence. Cheers.
Excellent report - many important subjects. Tariffs have been a part of US economic policy since the begining of the country. CPI averaged during 2016 thru 2020 only 1.93%. Very low, especailly compared with the last four years. Tariffs are easily demagogued by the politicians and the media (not Sal M.). Trumps emphasis on trade global trade, specifically with China, went well beyond inexpensive sneakers imported from China: IP theft and China's extreme mercantilist trade policy. It all depends on "who's ox is getting gored".
Trump's economic policies are no better than Kamala's. And who are these so-called economic advisors coming up with these ideas? Most of his last administration has nothing to do with him.
Sal, as a result of this episode I reviewed your list of previous episodes to see if I should look at any ones again. I stumbled on the World War Zero episode. I missed it because of its title and graphic. That is one scary episode. If I look at the idea of your course and add the intolerance people and nations seem to be exhibiting towards each other, what was scary becomes terrifying. We appear to be in a World War Zero era again! I will follow your course.
While global stability has many factors, the seas, commercial, pleasure, military, or fishing rights are certain to be included in what we consider a safe world. Keep up the good work.
HEY! I just realized your somewhat local to me, hope someday I can attend an open lecture etc. You are MESMERISING to any science--y info geek. Love to sail the Bay.
Port Authorities should have provisions in their contracts regarding equipment installed on the cranes - cellular modems that can be used for remote communication - were not documented in any contract between US ports and Chinese crane maker ZPMC. Additionally, their Information Security departments should be inspecting all newly installed equipment and equipment after maintenance to ensure there is no way to access the cranes remotely. This is cybersecurity 101. It doesn’t matter if the hacker is a nation state or a teenager, the port has to mitigate the risk.
Sal, Don't forget the "ILA" also represent the Long Shoremen in the Great Lakes also. And a strike starting on 10-1-24 that encompasses the East Coast will also GREATLY EFFECT all Bulk Carriers coming into the Great Lakes also. And the "Fall" is the busiest time of the yr. As they try to lay in as much freight into these ports before the Locks into the Great Lakes shut down for there winter season (January-March) This would be VERY BAD for Hundreds of Thousands of Independent Owner Operators (Truck Druvers) that rely on a lot of this freight to get them threw the winter months.
Thank you. Invaluable and extensive (also managing to navigate the treacherous waters of politics). In the current modern era, we need functioning shipping supply chains - not only to avoid hyperinflation, but to survive.
Great reporting Sal! I always assumed that the reason ships were registered in these small countries was to save money. But the fact that these countries have nothing to protect these ships with when bad times happen, such as what is happening now and leaves many ships open to attack. This does not seem like a smart way to operate. I would think that losing a ship in an attack would be a lot more expensive than registering in a country that can protect the ship. I have no idea what registration costs in different countries, but the large shipping companies may want to do a cost analysis on this.
Registration also includes having to follow the registration country's labor laws, including things like labor unions. As a result of that, American or European flag ships can cost 2-4x as much to crew as flag-of-convenience ships.
@@TheMysteryDriver The US is of course protecting no one from the Houthis. Nor should it. Why should the US taxpayer do that? Presumably any value provided by US flagging would be reflected in insurance rates. I haven't seen anyone mention any such differential.
@@gandydancer9710 well you're wrong. You can easily look it up. The US basically agreed to do this in the 40s to create NATO, push international trade and get people to use the petrodollar.
Sal - I think you need to do an episode/video on the importance of Maritime Colleges. I don't think the vast majority of young folks realize it is a viable career path. I sure as hell didn't! Maybe my life would have different. Let's give that option to others. Bill O'
Bring manufacturing back to the US and"supply chain" issues are minimized... our greedy ivy league school grads caused this problem...remember every decision in a company is based on the ceo and other officials bonuses.
The worlds shipping lines were perfectly happy to abrogate their entitlement to naval protection by registering their ships outside of western countries, it's not so surprising that the Panamanian and Marshal Islands Navies haven't intervened in the Red Sea. (Wrote this comment before you got to the end.). Realistically the flag off the back of the ship needs to have some sort of relationship to sense again.
As a British possession I think that officially that the UK and Royal Navy are responsible for protecting ships flagged in the Cayman Islands, along with all the other Crown possesions
Go to any old coastal city in USA. The old customs building is the nicest one in town as That is where the Federal government got the funds to run . Don’t want to pay duty ? Don’t buy imports . Feds could only spend what came in . Then the income tax was passed with an amendment . Now the sky is the limit !
True. Prior to the federal income tax, liquor tax and tariffs funded the US gov't. The federal income tax was introduced because Congress knew it would lose the revenue from liquor upon prohibition. Prohibition ended, liquor tax resumed, and the federal income tax carried on. Funny how that works.
And the U.S. Government was incapable of responding to ship seizures in Muslim countries… Income taxes were instituted to provide the necessary funds for the requirement of the US Military.
@@gandydancer9710 And do you know what prompted the establishment of a central government with tax powers? The Barbary Pirates and the national government being unable to fund national defence. Tariffs were tried and failed to raise adequate funding for government because when funds were needed most, the least imports occurred. Tariffs were a major factor in the Civil War. Poll taxes (a fixed tax on individuals regardless of income) followed as a prerequisite to voting (those were banned by constitutional amendments in 1964). Tariffs are not a panacea and impact those on lowest incomes worst. Tariffs never raised more than 5% of GDP to fund the federal government. Currently just under 20% of GDP goes in taxes. So what do you want to totally cut funding for? The military currently gets half the federal government budget.
@@allangibson8494 "The military currently gets half the federal government budget." You are full of nonsense, historical and otherwise. In 2023, the US military spent approximately $820.3 billion, or roughly 13.3% of the entire federal budget for that fiscal year. in some years during the 19th Century, tariffs provided as much as 95% of the revenue for the federal government. This was of course long after the Barbary Pirates had been dealt with and thus the Barbary Pirates could not possibly have been the impetus for any move away from tariffs as a major source of Federal revenues.
Hi Sal, fantastic video! freight rates, security, unions, etc. But why do you say the Chinese isn't disrupting Freedom of Navigation? I've seen them clash with the Philippines Navy. Btw i joined your Patreon cos i know RUclips takes a huge chunk.
Freedom of Navigation presumably has to do with trade. The Philippines Navy doesn't engage in trade. So the connection isn't as obvious as you apparently think it is.
The SS United States should be preserved, but without a mission or use case it is rather hopeless. I know of museum Tug boats in Sweden that are renovated by government money every 15 years and then neglected again... Rather pointless.
Can you spell American Hegemony? Rules Based Order? Unipolar World? Because the effects are the Asymmetrical Warfare events highlighted in your segments. If you can figure it out then you already know what the causes are of most of the existential questions expressed in this issue of What The Ship. Excellent video summing up the consequences of the above but strangely lacking in balance as to the causes. One example - Ukraine says Russia attacked a generic grain ship in Romanian waters with a missile. OMG. Conclusion? So sad for mariners. . . 73 days earlier Ukrainian sea drones attacked ships at the port of Novorossiysk. How did they get there? By ship. Where did that early drone attack come from on Sevastopol in the opening days of the Grain shipment cease fire agreement? From a grain ship leaving Odessa. How were the early drone boats used to attack the Kursk Bridge transported into range? By ship. There is incredible dancing around the cause and effect in the conclusions to each segments yet all have the same basic cause. The segments are like a gigantic Ven Diagram but no one is brave enough to name the elephant occupying the intersected spaces towards the centre that hold all the circles together. Everything is in code. No one wants to get tossed off RUclips. The Rust Belt didn't happen in a vacuum nor did the loss of the manufacturing capacity in North America to build everything from steel to ships to the majority of other capital goods. It was political decisions make to offshore factories to strand expensive North American labour and environmental laws. Free Trade agreements for example. The Long shore man strike is related. They know who the winners are (the shipping companies) and they aren't going to join the ranks of the losers. How is it that one union can wreak such havoc on the globalist economy? Because one private company controls what, 40%(?) of the global container ships? Just in time delivery? Amazon? The lack of ship building capacity in NA is related. The lack of trained personnel is related. Actions taken in the past have lead to the situation we find ourselves in today. There is a reason China is dominant and that goes back to decisions made by Ronald Reagan and Margret Thatcher. The push back by Iran, North Korea, the Houthi, Russia, China and The Global South is related. Sanctions ARE acts of war. Shipping is vulnerable and excellent leverage for the underdogs.
@@gandydancer9710 I don't think so. Perhaps you should watch "What's going on with shipping" before you declare things you've never heard before Nonsense.
@@gandydancer9710 I was wrong it is only 19.9% as of Feb 2024. But I thought I heard 40% Perhaps Sal sees this and remembers what the date was on his chart. Feb is a long time ago.
This is a very great channel. I am a Kenyan and I was wondering where can I get info on shipping and maritime for Africa. I am into maritime management too.
Women on war...I remember Mrs Thatcher didn't hesitate to take on argentina. Putin and the houthis need to dial it back...a lot. Ok, so great episode Sal, thanks for the considerations, I hope Mrs Harris will come across it as there is a lot to think about there post election sir!
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This channel have transformed from me from not knowing a ship about shipping to actually starting to get a grasp of the topic, thanks Sal!
Would you say it's making you... give a ship?
I'm sorry. In my defense, you started it. OK, technically Sal started it. :)
Don't worry once you figure it out it changes lol. Ever evolving industry
Me too! I always took it for granted!
Ok, just stop that ship right now.
@@ZGryphon Don't blame me for all this ship talk!
Titan: ''getting to the bottom of what happened' is the best summary I've heard yet.
That joke crushed it.
ba doom tish.
Sal, I never knew how much I'd appreciate the news I get from your subject matter. You've increased my knowledge base. That's wealth no one can dismiss. Thank you.
Wow, thanks
@@wgowshipping I second op’s comments. I work in healthcare and your news commentary puts supply chains in perspective. Your channel should pop up on everyone’s news feeds! It beats mainstream media.
I was a land-loving Naval reservist on a Naval Air Station in the past. Never set foot on a ship. I have listened to Sal since the inception of this channel and it has opened my eyes to the generally ignored world view of ocean commerce and the power struggle of legit and nefarious players on that world stage. Thank you, Sal.
I buy stuff so I am a consumer of ocean shipping.
We all are. And when the costs of shipping goes up, it increases inflation throughout the country. Shipping rates skyrocketed earlier this year. The decrease in shipping rates is nowhere near the increase we dealt with earlier this year. I think Sal might have a hard in the till, because I can’t imagine anyone wanting to see the rates increase, especially knowing that it increases the rate of inflation as well. For all the whining we’ve heard about inflation and how the Democrats have been doing a lousy job, the notion that an increase in shipping rates , especially after they’ve already skyrocketed, is preposterous.
@@mudman6156 "For all the whining we’ve heard about inflation and how the Democrats have been doing a lousy job, the notion that an increase in shipping rates , especially after they’ve already skyrocketed, is preposterous."
Learn to proofread. This sentence makes no sense.
And, yes, the Democrats have been doing a lousy job. Too.
I’m so glad I found you. I had no idea what I didn’t know or understand about shipping. Thank you for seeing the need for education on maritime issues
I stumbled across this channel a few months back think as a former sailor it might be interesting. I can honestly say it has turned into a wealth of information and education I never expected. Sal, today, I place you right up there with Robert Reich as my trusted sources for better understanding of geopolitics and global economics. I truly believe a structured compilation of your video material should be offered as a credited course for any good college economics program. At 65, I find it amazing how mch we can still learn when the material is presented in a Realtime assimilation manner. Thank You!
Reich has a ton of bad takes
Sal, you are making an impact throughout the news. Today I heard Victor Davis Hanson talking about freedom of the seas and shipping. These guys are listening to you!
"Sources say that ..." What sources? The host of this channel.
Made national news with an interview in Australia
It seems that many “viewers” are paying attention… including those up the chain of command.
In some ways, the truth being more widely available and having a high quality consumable summary… improves consistent shared objectives and to some degree, accountability and responsible action.
KEEP UP THE GREAT WORK SAL!
freedom of the seas or artic/ice-cap's or space ( like the moon/mars ect ) is a practical matter as there's no good way of defending/daily-policing/politics-ect something like a flooded-fort/under water base or collecting taxes-ect
USA has Monroe doctrine and salle/video/MAGA/founders is right if a ship wants help with pirate's-ect in the northern western hemisphere ( middle of atlantic and or pacific ocean's, AK/hi/other-dissonant holding's are a mistake as is over extended-politically and military wise, Mexican's was also a mistake on passing-on fully statehood option ) it needs to have USA sailor's/man'd ( passengers also need to be mostly USA passport holders and or -treaty'd-neighbours ie Canada/Mexican-to-panama_canal-zone or gulf's-island's like Florida keys's or cuba-ect ) and owners-ect and not Egypt...
For all things maritime, nobody brings us the news and analysis like Sal. Thank you, for taking the time to bring us the very latest news and analysis. Watching from North Carolina, USA. ❤❤
Agree, disagree, whatever... this channel is extremely relevant
Period
Cannot even express how much valuable insight there is here is this video. Thank you Sal.
You are God send for the news on the shipping because you have news about shipping that no one else is talking about 🙏🏽🙏🏽🇺🇸
Godsend? Praying hands? Really? There are no ghosts, fairies, elves, demons, or gods. Grow up would you please, join the mature world of adults who don't spread fantasy tales.
@@johnsmith1474 "Godsends" don't actually require a belief in God.
By watching your channel, I have discovered that we should all give a ship about shipping.
Hey Sal, did you see the news about a USN senior petty officer who was courtmartialed for setting up a Starlink connection and wifi network aboard a warship that was underway? Navy Times had a report about it on 3 Sep.
In which Sal calls out everyone, everyone deserved it, and no one was spared. Great video as always!
LOVE the longer videos Sal great job😎.. I know it's tough for you to do those from what you've said about free time , I appreciate ALL the news on shipping you give us btw, I would love if you could do some more videos on US Naval ship building and the MASSIVE ISSUE it is for us and our National Security due to our "severe lack of ability" to build pretty much ANY Warship, Commercial ship and even Submarine in any normal amount of time and on or under budget..😟.
It's so sad at our day and age what America has come to. We USED TO be the country most others wanted to be like, our factories and ship building industry was top of the line where we could pump out defense products & weapons, naval and commercial ships/subs in months and even weeks granted a lot of this was during war time but even before and a bit after we did it and then our idiot Presidents over the decades have forced ship building firms to close or be absorbed into just a few big ones and shrunk our Navy down to numbers that are laughable smh. I know I saw a video of yours that quickly mentioned a few changes we could make but if you could do some "in depth" videos on this and what/how to fix it would be awesome!(when you get a chance).
Thank you for everything you do on your channel Sal, keep up the good work!!👍👏⚓🚢
Tariffs like Corporate Taxation ends up being paid by the end users. This is why I am a firm believer in buying USA/local supplier. I try to buy American so that will see the citizens get the jobs.
_'Tariffs like Corporate Taxation ends up being paid by the end users.'_
This is true. But, it only captures part of the picture. De-industrialisation has a cost that's picked up by the taxpayer as well. Higher unemployment has knock-effects such as crime, substance abuse, loss of wealth such as house value when a one-company town collapses, etc. Our price tags don't capture these costs.
For much of US history it imposed tariffs on imports because the economy did not rely on exports unlike many other industrial countries like UK, Germany, France, and Japan. In the late 1800s exports by value no more than 10% of US GDP and decreasing as domestic consumption grew greatly and industrialisation expanded. Prior to the Great Depression exports were about 5% of US GDP in 1928. From 1970 to 2000 it ranged from 5.5 to 11.1%. Today it's about 11 per cent, in large part due to renewed energy exports.that make up about 11% of exports by value. Presently, exports are about 48% of Germany's GDP, 21.5% of Japan's, 32% of UK's, and 35% of France's.
Of the people who benefit most from free trade, it's the managerial and credentialed class, lawyers, government employees, and academics who face little to no foreign competition yet gain much from low prices and greater variety of goods and services. This is not to say working class people also see some benefits as lower prices improve quality of life, but they are the ones who face the highest risk of job loss and the cascading effects from that due to foreign competition.
Tariffs and income taxes are two very different things. a 30% tariff on a $100 wholesale item adds $30 and is likely to be passed on. That same $100 item under a 30% corporate rate is taxed completely differently, and might not be taxed AT ALL. It depends on the business expenses, and if a company barely breaks even one year, it pays little to no taxes no matter how many $100 items they buy from a supplier/importer.
If a company (like an auto manufacturer) imports $3,000 of parts/components on a BoM $15,000 cost car and I raise income taxes from 20% to 30%, each carmaker doesn't know what additional amount their competitors will pay because their costs/efficiencies/production will be different, and income taxes don't "force" you to make up any shortfalls: if GM happens to have too high costs in 2026, then they pay the IRS nothing because they break even... no income = no income tax. If that same company experiences a tariff increase by 10%, then they MUST pay it and they know everyone else in the industry is also paying it too. GM, barely breaking even, must pass it on because it's baked into the cost of goods and unlike income tax there's no "deductions" for tariffs, and Ford increases their prices when they see GM do so too.
In most cases income taxes get mostly absorbed by shareholders, and tariffs get mostly passed onto consumers.
It’s not gonna make a difference, because when you buy American you’re still paying for the parts to build American supplies from another country! US inflation is so out of control this past century that it is not sustainable for American manufacturers to solely buy American.
@@Joe-ij6ofyou are 100% correct and I keep trying to explain this to people, even folks who consider themselves to be intelligent!
@@stevie586 Witch is why taxing the income of overseas companies (which have profits or they wouldn't still be in business!) is better than tariffs hitting the American consumer. Simply require any foreign company which wants to sell it's goods in the US to pay X% of their gross revenue to the US government. IF they refuse they can't do business in the US. China needs US consumers more than US consumers need Chinese goods.
Your explanation of reshuffling alliances put me in mind of collegiate football teams switching conferences
Yeah, Sal explains it perfectly.
Not me.
Thankyou. Much food for thought. Your bibliography is most welcome.
Sal, you are amazing. Most folks in the US are blind to what's going on. Thank you for your experience and vigilantes. We all are better for your support! Thank you!
Shareholders & top management should accept the new reality that workers want a bigger share in profits. The strike at Boeing should serve as an example. But changing attitudes after 40 years of shareholders & CEOs taking 95% of profit growth will not be easy.
Workers wanting a bigger share of profits isn't a "new reality". Workers (and managements) have ALWAYS wanted a bigger share of profits.
You are an amazing story teller!
Thank you so much!
Yes, Sir. You are the BEST OF THE BEST. THANK YOU for your time and effort.
Thank you Sir...
Excellent analysis sir
From a cybersecurity professional thanks for both the objective analysis and humorous anecdotes!👍👍
Sal is on fire today 🔥
The Cayman Island Navy consists of a rowboat, a length of knotted line, and a parrot named Steffan.
And we’re expecting Steffan to look into things!
Thankyou, very informative.
Fascinating! So much good info. Thank you!
Glad it was helpful!
Great Video! Thanks for the
Information
Sounds kind of cartel-ish to me. Thanks to Sal, I have also gone from not knowing ship about shipping to learning a lot!
Outstanding work. Thank you.
Sal your great thank you
Fascinating. You raise some really important questions.
Thank you, Sir.
You do a great service to us by educating us about the very complex issues we all face as Americans!
The increase in anxiety, not so much😂
Thanks Sal. Good update.
If I recall correctly, the East Indian Company had its own navy to protect their shipping! Maybe the shipping industry should look into it! Rambling thoughts of an old hermit. (North Korea captured the USS Pueblo and shot down a Navy EC-121, killing the entire crew. We forget our history. We only have a total of 11 aircraft carriers!)
According to Google only sovereign nations can have warships.
@@randomnickify That's by law. Man may change law.
Don't forget, at times in history, for example during WWII, merchant ships were armed, making them warships. Convention (VII) relating to the Conversion of Merchant Ships into War-Ships in 1907 established the rules for this. That said, these may be amended or a signatory to a convention may denounce it, exit, and allow its merchant ships to operate as its new laws establish.
The "only" in that last sentence is doing some heavy lifting, given that _the entire rest of the world_ has a total of _eight_ aircraft carriers, all of them significantly smaller than any given one of ours.
"Only" 11, LOL.
@@user-bt8vn3dj6o You are not going to have armed ships going into foreign countries. No more than you're going to have airliners packing sidewinders. Do you really expect to sail into Tokyo or New York with a bunch of weaponry?
HUGE amount of info, Sal! Great show!
Very sobering video; thankfully Bab al-Mandeb is mentioned at the end.
Great show Sal!
much obliged dude, this is a unique news source I really appreciate. Sounion is an oil lamp
Explain how tariffs increase shipping rates. What is the mechanism. Thanks.
Paperwork and procedures ( at either loading or unloading) showing tariffs have been properly paid by all shippers and the apparatus to actually render those payments over to the government (and to handle disputes as to what is or isn't owing and/or due under those tariffs either from the shippers of the goods themselves or the shipping company handling the shipping) must be attended to continuously as new goods are shipped in from overseas; that paperwork and those procedures are all more work that the shipping company must attend to while moving the same volume of goods as before those tariffs were introduced - so therefore shipping costs rise.
The analysis differs - there's less fresh expense - if they are simply tweaking an already well-established system of tariffs though, like simply varying the percentage size of the tariff.
They affect the rates paid to shipping professionals because the importers are so strapped for cash that they just cuts costs everywhere, and they have been absolutely robbing folks in the shipping industry to afford those costs. In top of that, these Tarrifs Trump imposed are the reason prices are so high at the point of sale. Uninformed Americans think it’s Biden, and I’m so happy Kamala Harris finally stated publicly the mess Trump handed them, because I’ve been trying to explain this to people for years. When these tariffs are increased, the consumer always eats the cost; the folks who sell you products are not gonna pay you to buy them; they’re gonna charge you!
@@filmbuffo5616 That's Ignoramus Economics. Shipping rates are a results of supply and demand and tariffs can lower demand, thus lowering rates. But lowering demand can also lower supply, over time. So tariffs can both increase AND decrease shipping rates. It's not monotonic.
the last rant you had was about the Red Sea , get going bud i love it you are right !! love it!
What about the Red Sea?
What the ..... Ship!!!?? Wow! What an episode #109! You are the lone voice in the wilderness. The mood of too many people now is "nations are a thing of the past" 'cause we can all be friends. ... "Can't we all just get along?" Thank you for your diligence. Cheers.
Just incredible
#109 Loved the movie ! PT 109 . Happy Weekend.
like it when you really get wound up over real issues!
Good work Sal.
Excellent report - many important subjects. Tariffs have been a part of US economic policy since the begining of the country. CPI averaged during 2016 thru 2020 only 1.93%. Very low, especailly compared with the last four years. Tariffs are easily demagogued by the politicians and the media (not Sal M.). Trumps emphasis on trade global trade, specifically with China, went well beyond inexpensive sneakers imported from China: IP theft and China's extreme mercantilist trade policy. It all depends on "who's ox is getting gored".
Your reply is informative. Mahalo
vilifies china as trading partner, has all merch manufactured in china. hmmmm
Trump's economic policies are no better than Kamala's. And who are these so-called economic advisors coming up with these ideas? Most of his last administration has nothing to do with him.
extreme mercantilist trade policy - wow that is an accusation from a capitalist country :)
@@WALTERBROADDUSthe swamp is alive.😅
Great job with info thank you
Sal, as a result of this episode I reviewed your list of previous episodes to see if I should look at any ones again. I stumbled on the World War Zero episode. I missed it because of its title and graphic. That is one scary episode. If I look at the idea of your course and add the intolerance people and nations seem to be exhibiting towards each other, what was scary becomes terrifying. We appear to be in a World War Zero era again! I will follow your course.
Next video dropping on Monday.
Well done, Sal. Very well done!
Wow. A lot of bad news Sal. Anything good happening?
Thanks for this channel, and your coverage of the Baltimore tragedy.
Thanks for the heart ❤️ Sal!
Thank you Sal.
Thank you. Excellent video.
While global stability has many factors, the seas, commercial, pleasure, military, or fishing rights are certain to be included in what we consider a safe world. Keep up the good work.
We don't live in a safe world, so that sentence is meaningless.
Dam* you been a busy fella! Thanks!
Thank you! Stay awesome Sal!
HEY! I just realized your somewhat local to me, hope someday I can attend an open lecture etc. You are MESMERISING to any science--y info geek. Love to sail the Bay.
Port Authorities should have provisions in their contracts regarding equipment installed on the cranes - cellular modems that can be used for remote communication - were not documented in any contract between US ports and Chinese crane maker ZPMC. Additionally, their Information Security departments should be inspecting all newly installed equipment and equipment after maintenance to ensure there is no way to access the cranes remotely. This is cybersecurity 101. It doesn’t matter if the hacker is a nation state or a teenager, the port has to mitigate the risk.
Hard to believe now, but 30 years ago I was working on the design of container cranes being built in the UK to send to China.
Sal, Don't forget the "ILA" also represent the Long Shoremen in the Great Lakes also. And a strike starting on 10-1-24 that encompasses the East Coast will also GREATLY EFFECT all Bulk Carriers coming into the Great Lakes also. And the "Fall" is the busiest time of the yr. As they try to lay in as much freight into these ports before the Locks into the Great Lakes shut down for there winter season (January-March) This would be VERY BAD for Hundreds of Thousands of Independent Owner Operators (Truck Druvers) that rely on a lot of this freight to get them threw the winter months.
You need to fire that one man that did not delete the one world tax off this video. Thank you for what you do.
And you don't hear anything from our government media. Thanks again Sal
Thank you. Invaluable and extensive (also managing to navigate the treacherous waters of politics). In the current modern era, we need functioning shipping supply chains - not only to avoid hyperinflation, but to survive.
The US does not need a "functioning supply chain" through the Red Sea.
Great reporting Sal! I always assumed that the reason ships were registered in these small countries was to save money. But the fact that these countries have nothing to protect these ships with when bad times happen, such as what is happening now and leaves many ships open to attack. This does not seem like a smart way to operate. I would think that losing a ship in an attack would be a lot more expensive than registering in a country that can protect the ship. I have no idea what registration costs in different countries, but the large shipping companies may want to do a cost analysis on this.
Registration also includes having to follow the registration country's labor laws, including things like labor unions. As a result of that, American or European flag ships can cost 2-4x as much to crew as flag-of-convenience ships.
The US protects international shipping from allied countries as well.
Thank you. That explains a lot.
@@willythemailboy2
@@TheMysteryDriver The US is of course protecting no one from the Houthis.
Nor should it. Why should the US taxpayer do that?
Presumably any value provided by US flagging would be reflected in insurance rates. I haven't seen anyone mention any such differential.
@@gandydancer9710 well you're wrong. You can easily look it up.
The US basically agreed to do this in the 40s to create NATO, push international trade and get people to use the petrodollar.
Very informative. Thanks!
Whole lot of ship going down.
...to Mexico. Once on rail, its as good as delivered.
you better be ready!(Cypress Hill)
All the time man …
P.S.: Especially enjoyed the last 10 min. Fair critique of the system and motivations.
Hostage to a system. Interesting to watch.
"getting to the bottom is important here". Thats excelent.
You go saul ? Great sow. Great info!
"Great sow"? Male hogs too?
Sal - I think you need to do an episode/video on the importance of Maritime Colleges. I don't think the vast majority of young folks realize it is a viable career path. I sure as hell didn't! Maybe my life would have different. Let's give that option to others.
Bill O'
Bring manufacturing back to the US and"supply chain" issues are minimized... our greedy ivy league school grads caused this problem...remember every decision in a company is based on the ceo and other officials bonuses.
Sounds like there's a gap in the market for an armed naval mercenary corps to protect ships on contract.
That then are not allowed and actively prosecuted if they aim at poor terrorists... You can't make it up, yet in that messed up time we live.
Maybe Liberia can deputize some admirals into its worldwide blue water navy.
They exist. Unfortunately they don’t have the missiles required to get the Houthi’s attention.
Ships do in fact hire armed security.
The worlds shipping lines were perfectly happy to abrogate their entitlement to naval protection by registering their ships outside of western countries, it's not so surprising that the Panamanian and Marshal Islands Navies haven't intervened in the Red Sea. (Wrote this comment before you got to the end.). Realistically the flag off the back of the ship needs to have some sort of relationship to sense again.
As a British possession I think that officially that the UK and Royal Navy are responsible for protecting ships flagged in the Cayman Islands, along with all the other Crown possesions
Who says they are? If the UK doesn't get the revenue from flagging the ships why should it take responsibility for them?
Go to any old coastal city in USA.
The old customs building is the nicest one in town as That is where the Federal government got the funds to run .
Don’t want to pay duty ? Don’t buy imports .
Feds could only spend what came in .
Then the income tax was passed with an amendment .
Now the sky is the limit !
True. Prior to the federal income tax, liquor tax and tariffs funded the US gov't. The federal income tax was introduced because Congress knew it would lose the revenue from liquor upon prohibition.
Prohibition ended, liquor tax resumed, and the federal income tax carried on. Funny how that works.
And the U.S. Government was incapable of responding to ship seizures in Muslim countries…
Income taxes were instituted to provide the necessary funds for the requirement of the US Military.
@@allangibson8494 Wrong. Ever hear of the Barbary Pirates? No income taxes at the time.
@@gandydancer9710 And do you know what prompted the establishment of a central government with tax powers? The Barbary Pirates and the national government being unable to fund national defence.
Tariffs were tried and failed to raise adequate funding for government because when funds were needed most, the least imports occurred. Tariffs were a major factor in the Civil War.
Poll taxes (a fixed tax on individuals regardless of income) followed as a prerequisite to voting (those were banned by constitutional amendments in 1964).
Tariffs are not a panacea and impact those on lowest incomes worst.
Tariffs never raised more than 5% of GDP to fund the federal government. Currently just under 20% of GDP goes in taxes.
So what do you want to totally cut funding for?
The military currently gets half the federal government budget.
@@allangibson8494 "The military currently gets half the federal government budget."
You are full of nonsense, historical and otherwise. In 2023, the US military spent approximately $820.3 billion, or roughly 13.3% of the entire federal budget for that fiscal year.
in some years during the 19th Century, tariffs provided as much as 95% of the revenue for the federal government. This was of course long after the Barbary Pirates had been dealt with and thus the Barbary Pirates could not possibly have been the impetus for any move away from tariffs as a major source of Federal revenues.
I just cruised on Freedom of the Seas, out of Miami, last year. Nice ship!
Hi Sal, fantastic video! freight rates, security, unions, etc.
But why do you say the Chinese isn't disrupting Freedom of Navigation? I've seen them clash with the Philippines Navy.
Btw i joined your Patreon cos i know RUclips takes a huge chunk.
Freedom of Navigation presumably has to do with trade. The Philippines Navy doesn't engage in trade. So the connection isn't as obvious as you apparently think it is.
@@gandydancer9710 thanks!
Rock On / internationally shipping & trade threats of shutdowns
I just looked at Marine Traffic. I see the Arctic Ocean loaded with tankers, assuming this is part of the shadow fleet😮
This is around Russia not Canada
I'm a merchant mariner I was in Baltimore port and there is really hardly any ships coming in and out
I appreciate all you do and I found this video to be extremely fascinating and educational.
Great episode!
I'm not saying 'they're cartels...' BUT you know the gif I want to put here.
In England, the rail companies were prepared to negotiate with the Unions, but a Government Minister had power of veto....
Given that the UK government sets the tariffs I would certainly hope so.
Sam you are so correct about the flagging!!
great show buddy keep it up!!
Who's Sam?
The SS United States should be preserved, but without a mission or use case it is rather hopeless. I know of museum Tug boats in Sweden that are renovated by government money every 15 years and then neglected again... Rather pointless.
There have been plans and schemes for 30 years. None have gone through. Time has run out. ⌛🚢
Cheers to you Sal
Thanks for the great information. People better buy their Christmas presents now!
Can you spell American Hegemony? Rules Based Order? Unipolar World? Because the effects are the Asymmetrical Warfare events highlighted in your segments. If you can figure it out then you already know what the causes are of most of the existential questions expressed in this issue of What The Ship.
Excellent video summing up the consequences of the above but strangely lacking in balance as to the causes. One example - Ukraine says Russia attacked a generic grain ship in Romanian waters with a missile. OMG. Conclusion? So sad for mariners. . . 73 days earlier Ukrainian sea drones attacked ships at the port of Novorossiysk. How did they get there? By ship. Where did that early drone attack come from on Sevastopol in the opening days of the Grain shipment cease fire agreement? From a grain ship leaving Odessa. How were the early drone boats used to attack the Kursk Bridge transported into range? By ship. There is incredible dancing around the cause and effect in the conclusions to each segments yet all have the same basic cause. The segments are like a gigantic Ven Diagram but no one is brave enough to name the elephant occupying the intersected spaces towards the centre that hold all the circles together. Everything is in code. No one wants to get tossed off RUclips.
The Rust Belt didn't happen in a vacuum nor did the loss of the manufacturing capacity in North America to build everything from steel to ships to the majority of other capital goods. It was political decisions make to offshore factories to strand expensive North American labour and environmental laws. Free Trade agreements for example. The Long shore man strike is related. They know who the winners are (the shipping companies) and they aren't going to join the ranks of the losers. How is it that one union can wreak such havoc on the globalist economy? Because one private company controls what, 40%(?) of the global container ships? Just in time delivery? Amazon? The lack of ship building capacity in NA is related. The lack of trained personnel is related. Actions taken in the past have lead to the situation we find ourselves in today. There is a reason China is dominant and that goes back to decisions made by Ronald Reagan and Margret Thatcher. The push back by Iran, North Korea, the Houthi, Russia, China and The Global South is related. Sanctions ARE acts of war. Shipping is vulnerable and excellent leverage for the underdogs.
You are 100% correct, and clearly a very intelligent individual!
Spot on... You definitely don't ingest MSM.... Wish more ppl would follow suit
"Because one private company controls what, 40%(?) of the global container ships?"
Nonsense.
@@gandydancer9710 I don't think so. Perhaps you should watch "What's going on with shipping" before you declare things you've never heard before Nonsense.
@@gandydancer9710 I was wrong it is only 19.9% as of Feb 2024. But I thought I heard 40% Perhaps Sal sees this and remembers what the date was on his chart. Feb is a long time ago.
Salvador. You have online classes? Thank you 😊
Heard new oilers were purchased and they are high speed versions to keep up with the modern fleet. 20 total. Have to be good news.
You heard wrong. There are no oilers which keep up with warships.
@@gandydancer9710 Newer ones can but are not in use yet. you are not up to date.
@@martineastburn3679 I repeat, there are no oilers which keep up with warships.
It's a completely impractical idea.
@@gandydancer9710 NONE this second. The new fleet is about to come forth. You are unaware.
Good show. You hit it all.
I work for the ILWU and there’s no way we’d be allowed to go on strike in order to support the ILA without being sued.
Water levels in the Mississippi river are very low again and that is causing trouble for barges trying to move the grain harvest.
That is another story in the works as the Danube is near flood stage.
Those who try to do something and fail are infinitely better than those who try nothing and succeed.
Nope.
This is a very great channel. I am a Kenyan and I was wondering where can I get info on shipping and maritime for Africa. I am into maritime management too.
Women on war...I remember Mrs Thatcher didn't hesitate to take on argentina. Putin and the houthis need to dial it back...a lot.
Ok, so great episode Sal, thanks for the considerations, I hope Mrs Harris will come across it as there is a lot to think about there post election sir!